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Activity Number:
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173
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Type:
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Contributed
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Date/Time:
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Monday, August 3, 2009 : 10:30 AM to 12:20 PM
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Sponsor:
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Business and Economic Statistics Section
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| Abstract - #304089 |
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Title:
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Establishment Wage Differentials and Occupational Employment: A Study of Aircraft Parts Manufacturing
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Author(s):
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Jane G. Osburn*+
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Companies:
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Bureau of Labor Statistics
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Address:
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2 Massachusetts Ave NE, Washington, DC, 20212,
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Keywords:
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factor-structured logit ; latent variable model ; structural equation modeling ; factor model ; multilevel model
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Abstract:
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This paper examines the correlation structure of establishments' wages and the simple proxy for technology usage that is manifested in establishments' occupational staffing patterns. The analyses define a latent variable underlying measures of the wage structure of the establishment, including a measure designed to gauge the explanatory power of a theory of establishment wage differentials. Data from the Bureau of Labor Statistics' Occupational Employment Statistics Survey is used to examine the relationship between this latent construct and the employment share of machinists. In this industry, establishments' employment share of machinists is correlated with a latent construct defined by the inter-correlation of the wages of Inspectors, the wages of Team Assemblers, and a measure of the wage structure that should be correlated with the incidence of cross training and pay-for-skills.
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